The present invention relates to systems and methods to support import-export transactions. More particularly, it includes methods and systems for negotiating terms for settlement of an international shipment, for advising an agreed bank that the terms have been met and for remittance from a line of credit or similar credit facility.
International import-export transactions may involve many actors, including exporters, export freight forwarders, import freight forwarders, and importers. In addition, they may involve customs brokers, transportation companies, and warehousing companies. Transportation companies may operate ships, planes, trains or trucks. While companies handling small packages, such as Federal Express or UPS, have integrated systems for handling and advising customers regarding their processing of domestic shipments of goods, from pickup to delivery within their own transportation networks, there is no collaborative integrated system for handling import-export transactions through multiple independent actors.
The cycle for global trade transactions may be slowed by the flow of information, the flow of goods or the flow of funds. The separate software systems of the typical actors, such as ERPs, compliance systems, transportation management systems, customs broker systems and banking and trade settlement networks are not well-suited to expediting these flows of information, goods or funds among the actors.
In the settlement of international trades, it has long been recognized that processes of documentary credit issuance and redemption are fraught with opportunities for error and resulting frustration. For instance, Tozzoli et al. in U.S. Pat. No. 6,151,588 comment in column 3 on how an issuing bank requires that all of the documents called for in a letter of credit exactly correspond with the terms of the letter of credit, and withholds payment to the seller even due to typographical errors and minor misspellings, with resulting frustration to sellers seeking payment. Tradecard, Inc., the assignee of the '588 patent, responded to this and other long-identified problems with documentary credits by creating an alternative funding mechanism, which is described in the '588 patent and their “Financial Supply Chain Automation: The Missing Link in Supply Chain Management White Paper” (PDF file created 29 April 2002) available from their web site www.Tradecard.com. Tradecard sidestepped the documentary credit problems by creating a new financial instrument and arrangement. However, banks are slow to adopt new financial instruments.
Accordingly, an opportunity arises to devise methods and systems that facilitate payment using familiar financial instruments, such as payment from a line of credit.